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Kim, Kim, SongHawk SongHawk June 20, 2002 June 20, 2002 Lean Journey in Chonan Factory

Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Page 1: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

Kim, Kim, SongHawk SongHawk June 20, 2002June 20, 2002

Lean Journey inChonan Factory

Page 2: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Chonan Factory SnapshotChonan Factory Snapshot

• Factory Relocated to Chonan in 1995

• Introduce Lean Program in 1995

• COE : CCTV Camera, AoB, Industrial Switch(Global Launch)

• Certification : ISO9000, ISO14000,QS9000

• Awarded I.E Grand Prize in 1998

• Awarded Best Labor-Management in 2000 by Government

• Global R&D Center in 2001

Page 3: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Products Products (ACS multi-functional operation)(ACS multi-functional operation)

Revenue - ‘Manufacturing + OEM Product

Page 4: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Road Map Road Map for Chonan Lean Activityfor Chonan Lean Activity

Lean PreparationLean Preparationunder LG groupunder LG group

RestructuringRestructuringunder IMF crisisunder IMF crisis

Selective ConcentrationSelective Concentrationunder Six Sigma Plusunder Six Sigma Plus

- TPS benchmarking- Line Integration - Supply Chain Improve - 5S + Morale

- Flexible Work force- Outsourcing & Phase out- Sub Vendor Relocation

‘95 ~ ‘98

‘99~’00

‘01~’02

- World Best Products- Digitization- Six Sigma- Lean- NWT

‘01: USD 2,995K (YDT-Dec)‘02 Target : USD 1,500K

Page 5: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

ProductivityProductivity

• Visual Management

• U- Line

• Autonomation

• NWT (Natural Working Team)

• Supply Innovation Productivity = ( A-B ) / A’

A’ : Factory conversion cost in last yearA : Factory conversion cost in last year, adjusted by volume factorB : Factory conversion cost in current year, adjusted by inflation factor if ( A-B) > 0, The Productivity is favorable ( Increasing productivity)

CP Goal

8%

‘02 YTD-May

Page 6: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Morale

Page 7: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Visual Management - Andon

Page 8: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

U-Line - U-Line - CCD CameraCCD Camera

Page 9: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Autonomation - AoB Line

Page 10: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

NWT

Page 11: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Inventory TurnsInventory Turns

OTTP / OTTSOTTP / OTTS

11.00

14.20

16.00 16.00

2000 2001 2002 Goal 2002 May

97%

99%

90%

95%

90%

98%97%

97%

2000 2001 2002 Goal 2002 May

OTTP OTTS

CP Production Manufacturing + OEM Product ( OTTS : Production Manufacturing only )

• Kanban

• Supplier Relocation

• Consignment Stock

• Shuttle Truck

• Sub - Vendor council Meeting

Inventory - Supply chain

Page 12: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

Kanban - BD Center

• On Lamp →

Shop Order

Page 13: Kim, SongHawk June 20, 2002 Kim, SongHawk June 20, 2002 Lean Journey in Chonan Factory

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Lean Enterprise Lean Enterprise

• Flexible Manufacturing System

- Lean / Outsourcing / Multi-player

• Certified Quality System

• Low Cost Investment

• Advanced logistics

• Full Process Capabilities in Biz System

R&DR&D

Supply

Supply Manufacturing Manufacturing Engineering Engineering Sales Sales Installation

(Project Mgmt.)

Installation

(Project Mgmt.) C / S C / S

Summary